Jack In The Box 2012 Annual Report Download - page 57

Restaurant closing costs consist of future lease commitments, net of anticipated sublease rentals and expected ancillary costs, and are included in
impairment and other charges, net in the accompanying consolidated statements of earnings. Total accrued restaurant closing costs, included in accrued
liabilities and other long-term liabilities, changed as follows ( in thousands):
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Balance at beginning of year
$21,657
$25,020
Additions and adjustments
5,787
3,499
Cash payments
(6,767)
(6,862)
Balance at end of year
$20,677
$21,657
Additions and adjustments primarily relate to revisions to certain sublease and cost assumptions in both 2012 and 2011.
The future minimum lease payment and receipts for the next five fiscal years and thereafter are included in the amounts disclosed in Note 8, Leases. Our
obligations under the leases included in the above table expire at various dates between 2014 and 2029.
Restructuring costs — During fiscal 2012, we engaged in a comprehensive review of our organization structure, including evaluating opportunities for
outsourcing, restructuring of certain functions and workforce reductions. As part of these cost-saving initiatives, we offered a voluntary early retirement
program (“VERP”) to eligible employees and initiated workforce reductions. The following is a summary of the costs incurred in connection with these
activities during fiscal 2012 (in thousands):
Enhanced pension benefits (Note 11) $6,167
Severance costs 6,987
Other 2,307
$15,461
Refer to Note 11, Retirement Plans, for additional information regarding the costs associated with enhanced pension benefits. Total accrued severance costs
related to our restructuring activities are included in accrued liabilities and changed as follows during fiscal 2012 ( in thousands):
Balance at beginning of year $ —
Additions 6,987
Cash payments (5,229)
Balance at end of the year $1,758
As part of the ongoing review of our organization structure, we expect to incur additional charges related to this activity; however, we are unable to reasonably
estimate the additional costs at this time.
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The fiscal year income taxes consist of the following ( in thousands):
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Current:
Federal
$32,010
$48,265
$55,765
State
5,248
11,042
8,420
37,258
59,307
64,185
Deferred:
Federal
(5,553)
(8,077)
(24,070)
State
(1,062)
(4,755)
(3,484)
(6,615)
(12,832)
(27,554)
Income tax expense from continuing operations
$30,643
$46,475
$36,631
Income tax benefit from discontinued operations
$(3,456)
$(1,298)
$(825)
F-17